Europe Open: Potential Breakouts across risk-correlated assets.

EUR/USD H1

EUR/USD pushing below Yesterday’s low after hitting H3 during Asian session. A breakout appears likely and could be confirmed if price manage to drop below L4 and also 3rd Oct high (not shown in chart).

GBP/USD H1

After a tight consolidation during US and Asia session, Cable appears to be ready for the next leg down with a break below yesterday’s consolidation range. Trading range found around 7 – 9 September may provide short-term support below 1.60.

DAX Futures H1

Consolidation range found last week appears to be broken. To fully understand the extent of bearish momentum, look no further to Today’s opening prices, which saw price gapping slightly higher and crash lower immediately after. Currently we’ve broken L4 with L5 (7,225) as a plausible target today.

FTSE 100 Futures H1

Threatening a break away from the Channel, but price could still enjoy some support at current levels. Bears will wish to push below Yesterday’s Low and also previous swing low found on 2nd Oct to establish a firm downtrend.

Brent Crude Oil H1

Despite the sell-off across currencies and equities, Brent is largely unmoved. Asian session was unable to push beyond H3, and given the risk-off environment we’re seeing right now, it will not be surprising to see Brent go lower with Yesterday’s Low/Consolidation range bottom as downside target.

Bottomline:

Yesterday’s EZ Fin Ministers meeting did not yield anything positive/significant. Market is currently responding in-kind to the disappointment and we could finally see strong trends coming soon after inactivity last week.

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